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If your company has more than $500 million in revenue, cloud computing may not be a cost-effective option, a McKinsey & Co. report suggests. Steve Lohr takes a look at McKinsey's research, including a finding that it would cost more than double to outsource a typical corporate data center to a cloud service than to keep it in-house. However, Lohr writes, there is one aspect of cloud computing worth cribbing from: virtualization, which "allows server computers to juggle more software tasks, and thus increase utilization, reducing capital and energy costs."

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If your company has more than $500 million in revenue, cloud computing may not be a cost-effective option, a McKinsey & Co. report suggests. Steve Lohr takes a look at McKinsey's research, including a finding that it would cost more than double to outsource a typical corporate data center to a cloud service than to keep it in-house. However, Lohr writes, there is one aspect of cloud computing worth cribbing from: virtualization, which "allows server computers to juggle more software tasks, and thus increase utilization, reducing capital and energy costs."

If your company has more than $500 million in revenue, cloud computing may not be a cost-effective option, a McKinsey & Co. report suggests. Steve Lohr takes a look at McKinsey's research, including a finding that it would cost more than double to outsource a typical corporate data center to a cloud service than to keep it in-house. However, Lohr writes, there is one aspect of cloud computing worth cribbing from: virtualization, which "allows server computers to juggle more software tasks, and thus increase utilization, reducing capital and energy costs."

If your company has more than $500 million in revenue, cloud computing may not be a cost-effective option, a McKinsey & Co. report suggests. Steve Lohr takes a look at McKinsey's research, including a finding that it would cost more than double to outsource a typical corporate data center to a cloud service than to keep it in-house. However, Lohr writes, there is one aspect of cloud computing worth cribbing from: virtualization, which "allows server computers to juggle more software tasks, and thus increase utilization, reducing capital and energy costs."

Onerous distribution costs aren't just for print media -- by one estimate, Google is losing $470 million a year on YouTube, in part because of the high cost of hosting user-generated video. On the other hand, notes Slate columnist Farhad Manjoo, Hulu is on pace to outearn its larger rival because its premium content commands higher ad rates while its lower traffic requires less in overhead.

Analysts predict Canadian telecoms-equipment supplier Nortel Networks will be sold off in pieces rather than emerge from bankruptcy protection intact. Among the companies interested in Nortel's assets are Ericsson, Huawei Technologies and Nokia Siemens Networks, which reportedly has made an informal offer for the carrier unit. "We are pursuing opportunities that we believe will provide maximum benefit to our key stakeholders, including our creditors, customers and employees," Nortel said.